Commentary

V5.142 VAT payment—goods sold in satisfaction of a debt

Part V5 Compliance, enforcement and appeals

V5.142 VAT payment—goods sold in satisfaction of a debt

V5.142 VAT payment—goods sold in satisfaction of a debt

Where a business is carried on by a taxable person, and part or all of the assets of that business are sold by another person under a power exercisable by him in satisfaction of debts owed by the taxable person, the supply of the goods sold is deemed to be made by the taxable person1. This ensures that the supply is chargeable to tax regardless of whether or not the person actually selling the goods is a taxable person.

Regulations2 made under VATA 1994, Sch 11, para 2(1), (12) provide that the

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